What is Pivot?

The concept of pivoting, popularized by Eric Ries in The Lean Startup, acknowledges that initial business plans are often wrong. Successful pivots retain what's working while changing what isn't. Types of pivots include: customer segment pivot (same product, different customers), problem pivot (same customers, different problem), platform pivot (changing from application to platform), business model pivot (changing revenue model), and technology pivot (same solution, different technology).

The decision to pivot requires balancing persistence with adaptability. Pivoting too quickly means abandoning strategies before giving them a fair chance. Pivoting too slowly wastes time and resources on a failing approach. Key signals that a pivot is needed: consistently missing targets, customer feedback contradicting assumptions, competitors capturing the intended market, or discovering a more attractive adjacent opportunity.

In case interviews, the pivot concept is relevant for startup strategy cases and turnaround situations. If a company's current strategy isn't working, recommend a pivot rather than doubling down. Articulate specifically what would change and what would stay the same, and how the pivot addresses the root cause of underperformance.